PM Report: Political Outlook For 2011

WSJ's Alan Murray and Peter Landers discuss the political landscape in 2011 and whether President Obama and Congressional leaders will find common ground.

This transcript has been automatically generated and may not be 100% accurate.

... in ... the the the the when you hear we ... look at what we can expect in politics in twenty eleven ... welcome to the NIT that I'm helping covered and joining me here to all three channels Alan Murray and forthing ... that appeared to be a wild deer head of the Torabi after one ... another twenty ten and of course Peter Landers is also joining us down in Washington thanks for being here Peter NetApp ... surprise a lot of the caucus in the lame duck Congress especially the in terms of respect for working with the White House ... can we expect that any of that will continue in the New year especially at that a change of leadership takes hold ... well each side is certainly going to try re says they want to work together in a bipartisan way but ... we're coming up a ... large force when the current budget continuing resolution runs out ... the government will need to be funded for the rest of the of the year ... and that's a ... good chance for Republicans to really put over their priorities ... and the budget and they say that what I'm ... not cut excessive government spending and so ICG's I can see a bigger class coming up ... around that time ... Melanie chance to steer them well ... well it is closer to it that I know that I am I think all all that proved to the last month was that they can cooperate ... that they're both playing Santa Claus but yet will give you tax cuts and will give you some some outstanding unemployment benefits whatever ... but as you point out come March I have to make much tougher decisions that your greatest of of ... some spending how you really widened this massive ... of of budget gap that is that on top of ... the Bay Area CSeries and a half to come together they have to find common ground at this point and what I that ... well they have to read it I mean Peter they have to do something before the death of expires right ... that's exactly right the debt ceiling ... will expire in the spring and ... I think even the Republicans agree that the ... United States can't default on its debt so that that's doing well after the raises some point but the question is ... how much ... each side wants to use as a ... tool ... a bargaining chip to to get their way ... what I think some of what appears a lot of people who feel like it if you go back to the last time we had this kind of the situation in nineteen ninety four ... led to a shutdown of the government ... lot of people think that that backfired against New Cambridge and the Republicans then ... is there any fear that a total standoff ... could backfire against the ... Republicans who and who will just be taking power ... certainly I mean I think that's that everyone is aware of that nineteen ninety four ninety five ... experience with the government shutdown that certainly work to Bill Clinton's favor ... and Republicans don't want that to happen megawatts ... of ... Barack Obama to be reelected as Bill Clinton was re elected ... that's something we're Tina Fey Araby also have the tea party years ... or a strong force in the ... new Republican led House and Senate as well ... we're saying it's time to take a stand on on spending in excess of the government involvement in the economy so ... it won't be easy for the Republican leadership to balance some of these priorities ... the Scot this tumultuous election season and we're not too far off the doorstep of a new campaign cycle thirsty for some the House members for Obama to decide his running and enemies of unemployment and I'm twenty percent housing is still in trouble him if they don't see a turnaround to quickly in the new year on how much is this the overhang of normal by the salt red pepper we were ... sitting in the last campaign cycle on these issues are really can be tough bind to these these folks to get over ... all I think it will overhang look I mean when we are seeing signs that the economy is getting better but it's getting better at a slower rate unemployment is not going to come down rapidly and people are always slower to feel the improvement ... of them The them the numbers show so ... so I don't think the economy is going to go away ... as an issue any time in two thousand eleven and my guess is it'll still be hanging around is in the torrents of them the partners in the early twenty twelve twenty think ... I think sorry I have remained so many things were discussed the Spector's of the Democrats' huge defeat in two thousand ten ... in the midterm elections I feel like the economy was was ... the overwhelming factor there with them nearly ten percent unemployment ... it was just very difficult for a governing party ... had to do very well election and if the economy still like that ... two years from now I think ... President Obama has a really tough time if it's ... steadily getting better and aren't too many bumps on the road ... even if people are fully feeling and if they ... have the idea that it's getting better than the present Obama is ... much more secure terms of the election ... and here in the July twenty eleven as ... an inflection point with the look of the Afghanistan war and what you think the president ... and it will do what we talk about these troop levels will they come together decide on whether or not to ... that's the point that they can pull out or will that be a major issue in terms of the overall political landscape in the next year ... yet one interesting note about CardioNet dynamic of the new Congress is that the Liberal was in the Democratic Party Liberals are perhaps even stronger than they were before because many of the ... moderate to conservative Democrats lost in two thousand ten of their not so happy about the next day's fighting ... a war and it just goes on and on for nearly a decade now ... and it seems like perhaps a U S would have ... significant troop presence in the one thousand fourteen ... p I've been looking for the truth is a lot of these new Republicans are all that interested in foreign policy there I mean it was not a big issue in the election campaign ... I tell seem to think the thing I'd add to that though is that ... that foreign policy what you're asking us to look into the crystal ball here ... yet what the alley ... he is the least predictable part of this equation you don't really know ... of when the terrorists strike might happen right what's gonna happen in Korea what's gonna happen in your Rand how the Chinese are going to respond to various ... situations and and that can quickly throw a curveball into any predictions we make about ... twenty one and the Faraci although I wanna get to comment on what you think this their healing factor will be going forward in the political landscape in twenty ... eleven also will the Tea Party the indifference we are out in Congress in terms of policy in and what we were seeing a mean that was a big factor in twenty ten we can overlook that ... it would be exactly yes I mean that ... the Sarah pail I think her ... big decision I want to come in and then sometime this year an improvement it to run for president she's given signs both ways but she's keys are not the boys talkative with the the the Alice ups ourselves so that's her decision ... and if she does and that will certainly be a big factor for the tea party I've been one of the greats the stories of twenty eleven will be how the Republican party deals with Sarah pail and because on one hand ... she's been good for the party she's energize a lot of people out there on the other hand ... they're a lot of smart people in the party leadership who feel like if she is nominated ... she will not be able to win and so ... it creates a tension between wanting to encourage that enthusiasm but the same time not end up with Sarah pail and as the candidate ... in twenty twelve I and that's can be an interesting one while ... actors are accounting and you get this done and ... there at that hour on average they may decrease the month ... ten thousand tiny and has been in ... a letter from Washington we appreciate you being here as well that means that now ... I'm Kelsey Hubbard money thank you all for joining us in twenty ten two and is back here in twenty eleven ... it says shows everyday thirty am for all the news and insight they still need to now and the new year happy New year everyone